Tinubu’s policies may deter foreign investments — Report

• Published On: 19 August 2024 at 19:03

According to a new report from the Private Equity and Venture Capital Association of Nigeria, President Tinubu's recent policies do not appear to be well thought out and may deter foreign investment in the country.

The association stated this in its midyear review and strategic outlook for 2024, stating that the current administration's recent policies may impede and hamper success, according to Nairametrics.

According to the report, the Tinubu administration's policies have conflicting goals, which may discourage both domestic and foreign businesses.

According to the report, the current administration's short-term revenue generation goals are impeding efforts to create a business-friendly environment.

According to the report, "The implementation of policies with competing goals and interests will continue to deter investors." Policies lack consistency and, in some cases, appear to be a hasty reaction rather than a well-thought-out strategy. Specifically, a number of short-term revenue generation objectives continue to vie with the goal of creating a favourable business environment that attracts investors."

The report also included examples of revenue-generating measures that are counter to efforts to attract foreign investment.

Examples include the imposition of an expatriate levy on companies operating in Nigeria, which was later suspended, the cybersecurity levy, and others.

It stated that the policies, if implemented, would have created a toxic working environment for the current administration, but they also revealed how the government does not collaborate with the private sector.

The Securities Exchange Commission, among other important government departments and agencies, was mentioned in the report as still lacking a board.

President Tinubu's decision to "clean shop" by dissolving all statutory agencies, ministries, and departments in June 2023 has resulted in this situation.

It was discovered that a lack of new appointments has slowed economic activity.

Since taking office, President Bola Tinubu's administration has made significant changes to the energy and foreign exchange markets.

However, the economic impact of these reforms has been significant, particularly in terms of inflation and exchange rates.